America contributes the lion's share

Analysis:America contributed the lion's share of the gains at CRH last year, but it remains hopeful that momentum is picking up in lagging European markets.

Combined operating profits from the group's three American divisions - material, products and distribution - grew 33 per cent to €953 million.

Back across the Atlantic, the parallel divisions in CRH's European operation delivered a more modest 20 per cent increase to land at €814 million.

Chief executive Liam O'Mahony said yesterday that Iberia, central Europe and the Mediterranean were performing strongly, while the laggard economies are those at the euro-zone's heart like the Netherlands and Germany.

Sales in the Europe products division were up 26 per cent at almost €3.2 billion and operating earnings grew at the same rate to €221 million. In distribution, which includes builders' merchants and DIY, revenues swelled by 27 per cent to €2.78 billion, and profits were up 39 per cent at €172 million.

Materials had softer growth, with sales and operating profits both growing by 12 per cent to €2.97 billion and €421 million.

Leaving aside once-off items, acquisitions contributed an extra €68 million to operating profits in Europe, while organic growth generated €81 million.

Sales in the America materials business grew 51 per cent to almost €4.8 billion, and operating profits increased by 45 per cent to €475 million.

In Americas products, revenues expanded by 30 per cent to €2.75 billion, while the operating surplus was up 22 per cent at €375 million. Revenues in distribution grew 25 per cent to €1.45 billion and operating profits were up 28 per cent at €103 million.

Excluding once-offs and foreign currency adjustments, acquisitions contributed €122 million to profit growth in America, while existing operations added €121 million.

Acquisitions in the Americas materials divisions contributed €73 million of that, with €27 million coming from purchases made in 2005 and €45 million from those made in 2006. CRH's record €1 billion purchase of asphalt producer Apac in 2006 boosted last year's figure.